Back to top

Image: Bigstock

Universal Health (UHS) Q1 Earnings, Revenues Miss Estimates

Read MoreHide Full Article

Universal Health Services Inc. (UHS - Free Report) reported first-quarter 2019 adjusted earnings of $2.45 per share, missing the Zacks Consensus Estimate by 5.8%. Meanwhile, the bottom line matched the prior-year quarter’s figure on the back of revenue growth.

Results were impacted by a pre-tax unrealized loss of $4.3 million due to a decline in the market value of shares of certain marketable securities.  

Net revenues increased 4.3% year over year to $2.8 billion, banking on higher admissions and patient days. However, the metric lagged the Zacks Consensus Estimate by 0.4%.

Total operating expenses of $2.5 billion at the end of the first quarter rose4.7% year over year, mainly due to salaries, wages and benefits along with other operating expense plus supplies expenses.

Universal Health Services, Inc. Price, Consensus and EPS Surprise

Segment Update

Acute Care Hospitals:


Adjusted admissions and adjusted patient days were up 4.9% and 4.4%, respectively, from the prior-year quarter. Net revenues (on a same facility basis) climbed 4.7% in the first quarter, majorly aided by a rise in admissions and patient days.

Behavioral Hospitals:

On same facility basis, adjusted admissions inched up 2.9% while adjusted patient days dipped 0.9%, both on a year-over-year basis. Net revenues were up 3% during the quarter under review on same facility basis.

Financial Update

As of Mar 31, 2019, the company had cash and cash equivalents of nearly $62.7 million, down 40.4% from the year-end 2018-level.

Total assets were $11.7 billion as of Mar 31, 2019, up 4.1% from the figure as of 2018 end.

The company’s long-term debt came in at $ 3.8 billion, down 2.9% from the number as of Dec 31, 2018.

For the first quarter, net cash provided by operating activities totaled $391 million, down 4.6% year over year due to an unfavorable change in accounts receivable as well as other combined adverse changes.

Buyback Program

During the first quarter, the company bought back shares worth $106.3 million.

Moreover, last December, its board of directors authorized a $500-million jump from the existing share repurchase program.

Zacks Rank

Universal Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases From Medical Sector

Some stocks worth considering from the medical sector are as follows:

Aduro Biotech, Inc. is slated to release first-quarter earnings figures on May 1. This stock has an Earnings ESP of +82.00% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

bluebird bio, Inc. (BLUE - Free Report) has an Earnings ESP of +12.12% and a Zacks Rank of 3. The company is set to report first-quarter earnings on May 1.

Humana Inc. (HUM - Free Report) is set to report first-quarter 2019 earnings performance on May 1. The stock has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Universal Health Services, Inc. (UHS) - free report >>

Humana Inc. (HUM) - free report >>

bluebird bio, Inc. (BLUE) - free report >>

Published in